Definition ∞ Holder net change quantifies the aggregate movement of digital assets into or out of investor wallets over a specific timeframe. This metric indicates whether the overall supply held by investors is increasing or decreasing, signaling accumulation or distribution phases. A positive net change suggests increasing investor holdings, while a negative value implies selling pressure.
Context ∞ This on-chain metric is widely used to gauge investor sentiment and market liquidity in cryptocurrency markets. Significant positive holder net change often precedes price rallies, reflecting strong buying pressure from long-term holders. Conversely, sustained negative net change can indicate a lack of conviction and potential downward price pressure, making it a critical indicator for market analysis.
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